Hi there, I’m just new to the site so please go easy on me!
I’m a single mom and bought my house in Lucan in 2003 for 240K, it’s a 4 bed semi, tiny bit larger than average. I have my mortgage down to 150K & a house up the road sold for 355K a couple of weeks ago. Should I now just sell ( that’s if I can!) and rent for a couple of years and then try buy again? I think that this is the logical thing to do - as the property prices look like they are going to keep falling for at least the next year & rents are also falling…However every time I ask anyone’s advice they tell me to hang on to the house, this is what is confusing me, I haven’t lived through a recession before so I am not sure what they are talking about. There’s only the 2 of us, so I’m thinking if I do make even 180 from the sale then I could probably get a nice 2 bed in a couple of years and be mortgage free, rather than having to pay mortgage on this place for next 20 years. You all seem like you know your stuff - does this make sense to you?
Is your property close to your job. Is your mortgage affordable relative to your salary. Is your job secure.
Do you like your house?
I’m lucky I get to work from home, so from a work perspective where I live is not an issue as long as there is broadband. In terms of job security god knows to be honest, at the moment it is, but it’s private sector so no guarantees. The house is grand, but I’ve no emotional attachment to it at all. Was planning to rent it out and rent a 2 bed (as don’t need the additional 2 bedrooms here , but wouldn’t rent them as have a child and wouldn’t be comfortable with that) - but now with the property prices falling so rapidly I feel perhaps I should just get rid of it and try and make some money and bank it…
Ok, in that light, you sound like you have your mind made up and good reasons for the sale.
What was the 355k sale on the market for and what is the typical competition around there roughly, essentially, you are trying to steal the people looking at 2 bed apartments / 2 bed terraces but obviously you want to achieve something close to that previous sale, if possible.
Lucky she is not from Bray , wha!!!
If you could get anywhere near €355k for it right now, and if it is convenient for work as you say …and good BB is available in lots of Dublin … then you will pocket €200k for it sue.
I feel that amount could go a long way if …as I suspect …you will be buying more centrally next time and in a year or two . I am doubtfull that a €355k a few months ago would be a €355k today all the same .
Then again if you are north of the N4 that is the good bit of Lucan and it may be worth staying .
The 355K sale was for a house on my road, so exactly the same layout. I’ve done a little bit of work on mine & upgraded all the bathrooms & fixed up the kitchen, but essentially it was the same house type. He advertised it for 375K and then took the 355K & was delighted. Similar houses, same parish) in Lucan are ranging from about 350K to 450K - but I think I would be very lucky to get 350K as he made the sale a couple of months ago. They are still trying to sell 2 beds around here for 280K, while some 3 bed semis on the Clondalkin side are going for 270K-300K.
I’m just nervous that I’m making a mistake
You are nailed on to not get 355k for this property again in the next ten years.
You will probably not get 355k now.
I would put it on for 350k and be prepared to take an offer with firm finance at 300k (you might be lucky and get a bit more)…
Look at it this way… Someone comes on to the 'pin and asks whether they should buy a 3 bed semi in Lucan for 350k.
Well, basically any theory of fundamental value will give a very different result.
The 3 x median household income for what is, let’s face it, a very generic property type across Dublin will give a valuation of approx. 180k and this is declining!
What are rents looking like for similar properties?
Hi 2pack - can I ask why you think it would be worth staying? Do you mean the selling costs, moving costs, renting & re-buying costs & the hassle of it all etc …Agree , don’t think I’ll get the 200K , not now - be lucky to get 180K & sell it for 330K.
€180k will go a long way in 2 years time sue…then again you may not be able to raise a mortgage for the rest by then .
Only you know where you want to be then and everything changes when you have kids and you want that bit more security and proximity to schools/elders/family that a singleton can do perfectly well without .
So, I dunno !
Most of Lucan is average, average Dublin earns €37ka year now so I can see €150k houses out there by the bucketload .
yeah agree, I couldn’t believe that the one up the road sold!
It’s a 4 bed, so I presume that means it’s worth 240K, which is what I paid so at least that is ok.
Rents for a 4 bed are ranging from 1100-1400, I can get a 2-3 bed for 900 a month.
It can’t hurt to try and sell it then… Although I would urge caution along with 2Pack, there are other issues, is your child going to school yet, is he/she settled… Friends / family nearby, etc.
ok thanks for your advice. Yes she is in school, but I’ve talked it over with her and she’s cool, she’d still go to the same school etc & she’s no friends around this estate to play with so she doesn’t mind. I’m going to call an EA tomorrow and see if anyone is interested. I’ll pop back and let you know